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There Are Three Coordination Methods Used for Organizational Integration

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Essay

There are three coordination methods used for organizational integration. Describe and give examples of each.


Definitions:

Goodwill

An intangible asset that represents the premium paid over the fair value of the net identifiable assets of a company during an acquisition.

Initial Value Method

An accounting method used to record investments at their acquisition cost.

Noncontrolling Interest

A minority stake in a company that is not large enough to exercise control over its operations or policies.

Net Income

Profit calculated as total revenues minus total expenses, interest, and taxes, representing how much the company earned or lost.

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